Sustainability technology provider Clarity AI has launched a new tool to help fund managers, portfolio managers, and ESG analysts navigate the “growing complexity” of regulatory and labelling requirements for European sustainable investment funds. The solution aims to address the challenges of monitoring funds across “complex metrics and frameworks” by combining the information on relevant regulations into a single screen for users. “The goal is to reduce the amount of time fund managers spend on identifying potential investments that fall short of the standards, and understanding the cause for non-compliance, in order to decide on the best course of action,” said Henry Waind, Product Lead at Clarity AI. Clarity AI’s tool initially supports fund managers with the German FNG and the UK’s Sustainability Disclosure Requirements Labels. It will soon expand to also cover other labels, such as France’s Socially Responsible Investment label and Belgium’s Towards Sustainability label. The solution also assists screening for the Paris-Aligned Benchmark and Climate Transition Benchmark exclusions for the European Securities and Markets Authority’s Naming Rules. “Sustainability regulations and labels are proliferating, making it increasingly challenging for fund managers to keep up,” said Tom Willman, Regulatory Lead at Clarity AI. “A significant amount of resources is tied up in regulatory obligations. These could be better used to develop sustainable solutions that support end-investors’ sustainability goals, and technology is key to making this process more efficient.”
